CERTYNEX IFRS ACADEMY

At the year-end, an industrial furnace of Lumarec, measured at cost, has a carrying amount of 500,000. The impairment test shows a recoverable amount of 520,000. What follows?

Recognise a gain of 20,000 in profit or loss to reflect the increase in value observed

Recognise no impairment loss; the carrying amount stays at 500,000

Increase the carrying amount to 520,000 against other comprehensive income

Recognise an impairment loss of 20,000 in profit or loss